Vulture in waiting

Tax-cut fever may be gripping Wall Street but the buyout firm led by David Rubenstein is embarking on its biggest quest for distressed assets. The $2.5 bln fund is a good reminder that lofty valuations, an aging recovery and a chaotic new administration can produce bad outcomes.

Context News

The Carlyle Group said on Feb. 23 it raised $2.5 billion for its latest distressed and special-situations fund, Carlyle Strategic Partners IV. The fund is more than triple the size of the alternative asset manager’s previous such offering, a $700 million fund that closed in 2011.

The fund will invest in the debt and equity - both public and private - of companies in the United States, Europe and Asia experiencing financial, operational or cyclical distress, the company said.

"The current global economic and market environment is laying the groundwork for solid distressed control and turnaround investment opportunities," Ian Jackson, managing director and co-head of Carlyle Strategic Partners, said in a statement.